Fed's Lael Brainard speaking
She says:
- there is a risk inflation expectations of slipped
- policy may have to stay accommodative to get to 2% inflation
- countercyclical capital buffer good for imbalances
- proposes yield Says tools if rates at lower bound
- nonmonetary tools needed to temper financial cycle
- lower bound may constrain policy rate more frequently
- robust countercyclical fiscal policy is vital
- rate caps would transmit additional accommodation
- yield curve caps would augment credibility
- she prefers flexible inflation averaging to achieve Fed's 2% inflation goal